22 NOVEMBER 2006
SIGNIFICANT SAVINGS CAN BE MADE IN GOVERNMENT OFFICE ACCOMMODATION, SAYS
AUDITOR GENERAL
Estimated savings of around $20 million a year could be made if WA public
sector agencies were to comply with the Government’s policy on the provision
of office accommodation for public servants.
A report from Acting Auditor General
Colin Murphy tabled in Parliament today has found that most Government office
space does not meet the mandatory policy standard of 15m2 per person, with
average space per person currently 21m2 – some 40% over the standard.
Meeting that space efficiency standard of 15m2 would result in a reduction
of office space holdings of approximately 80,000m2 (a floor area that corresponds
to almost four buildings the size of Dumas House) and when achieved generate
possible savings of around $20million per year.
Mr Murphy also found that whilst
existing office accommodation policies provided a sound base for achieving
efficiencies, the absence of regular monitoring of performance and policy compliance
has hampered the realisation of any cost efficiencies.
Currently Government
occupies over 600,000m2 of office space at a cost of over $140million annually – for
agencies it is often the second largest single expense after staff costs.
These
costs are likely to increase substantially over the course of the next 18 months,
primarily due to a tightening of the market for office space.
Leases for approximately
80,000m2 of Government office space are due to expire in 2007, when the market
for office accommodation is likely to be at its tightest for 15 years, thus
placing significant upward pressure on the cost of Government office space,
warns Mr Murphy.
Compounding this situation is the fact that many Government-owned
office buildings are ageing and will require capital investment to provide
high quality and efficient workplaces in the future.
To address these emerging
issues Mr Murphy recommends that the strategic planning process for Government
office space at the Department of Housing and Works (DHW) be enhanced.
DHW,
says Mr Murphy, should gather and analyse reliable and comprehensive information
on accommodation cost efficiency and, at regular intervals, assess the impact
of office accommodation policy to identify and target opportunities for efficiency
improvements.
Further, DHW, supported by agencies, should seek to ensure that
Government office space more consistently achieves the mandatory occupancy
density ratio of 15m2 per person as this would achieve efficiencies and offset
rising rent costs.
Mr Murphy also recommends that DHW should better communicate
the potential effectiveness as well as the efficiency benefits of moving to
open plan layouts and provide advice on key strategies to achieve this policy
objective.
He, however, does sound a word of caution.
“A narrow focus
on economic efficiency in this area would be short sighted,” he states.
“Government
should place equal importance on effectiveness, and look to achieve the better
staff morale, retention, productivity and communication that can flow from
good workplaces.
“This means well-designed office space, not just open
plan space, but space which supports and shapes changes in how people and organisations
work together to deliver high quality services.”
Ends/.
Media Contact: Peter Villiers,
Manager Reporting and Communications
Tel: (08) 9222 7558. Mobile:
0417 936 171 Fax: (08) 9322 5664
4th Floor Dumas House 2 Havelock
Street West Perth
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